Federal Tax Rebate for Electric and Hybrid Vehicles

We are all trying to live a green lifestyle and be as eco-friendly as possible and there's no denying that the all-new Nissan Leaf is changing the way we travel. Check out this recent article posted on Automotive News about a Federal Tax Rebate for Electric and Hybrid Vehicles. 

Bill would hike cap on number of EVs eligible for U.S. rebate 

Written by Lauren Abdel-Razzaq of Automotive News

DETROIT -- Two Michigan congressmen want to expand the number of plug-in hybrid and electric vehicles eligible for a federal tax rebate, one day after President Obama reiterated his commitment to put 1 million EVs on the road within four years.


U.S. Rep. Sander Levin, D-Mich., proposed legislation in the House today and his brother, Sen. Carl Levin, D-Mich., plans to introduce a similar bill in the Senate that would increase the per-manufacturer cap on the $7,500 tax credit from 200,000 vehicles to 500,000. 


The rebate was started as part of the Recovery Act of February 2009. It is currently available on five vehicles -- the Chevrolet Volt, the Tesla Roadster, the Nissan Leaf, the CODA sedan and the Wheego LiFe. It is phased out after a manufacturer sells 200,000 units. 


General Motors Co. has said the cap could hinder future sales of the Chevrolet Volt, which sells for $41,000, with delivery, before the credit.


To jumpstart EV demand, the White House also wants to change the $7,500 tax incentive currently available for buying an electric car into a rebate that consumers could use at the time of purchase. 


Obama has pledged to expand research and development in batteries and electric drivetrain, technology, including a 30 percent increase in federal grants.


“With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have a million electric vehicles on the road by 2015,” Obama said in his State of the Union Address.


The administration also is extending initiatives to improve electric vehicle infrastructure in U.S. cities. As many as 30 communities across the country would be able to receive grants of up to $10 million each to install public charging stations, electrified parking space access and fleet conversions.


Vice President Joe Biden visited Ener1 Inc., a lithium-ion battery manufacturer in suburban Indianapolis today, to jumpstart the administration's efforts.


Ener1 Inc. won a $118.5 million grant as part of the Recovery Act to expand production of batteries for plug-in hybrid and electric vehicles.


The grant allowed the supplier to add 120 jobs at its Indianapolis plants in 2010, according to a White House statement.


“Green vehicles represent the vanguard of automotive innovation, but they have to be economical for consumers and profitable for manufacturers,” Sander Levin said today in a statement. “Raising the cap on this credit will help carmakers reach the demand and production scale necessary for long-term viability.”


Read more: Autonews.com/